Mr. Ronald Ridderbeekx:

Thank you, I realise we are pressed for time. I will outline the international context around smuggling. It is a global problem. I will discuss the problem mainly in respect of Europe. A large number of people in our company are dedicated to helping law enforcement officials throughout the world to combat smuggling. In Europe we signed a voluntary agreement in 2010 with the European Anti-Fraud Agency, OLAF. The agreement runs for 20 years and is worth €200 million. I say as much to signify that we make a significant commitment to combat smuggling. That is to support our view that we want smuggling eradicated if possible, in the same way as we have an objective that we share with the committee to eradicate children's take-up of smoking.

I wish to emphasise why we are here. It is to talk about the plain packaging proposal, a proposal to remove branding from packs of cigarettes and other tobacco products. I contend that this is not the right mechanism to use to achieve the objectives of reducing smoking rates or to stop children from smoking.

We have seen the evidence from Australia. I agree that it is early days but the evidence from there does not lie. Smoking rates in Australia have not dropped and smuggling is on the rise. We must continue to monitor that situation but it supports the view that plain packaging is not the right way of achieving those objectives. All it will do is remove legitimately and legally registered trademarks which have value not only to companies but also to consumers, since it gives them reassurance around the origin and quality of the product they buy. Moreover, we believe pain packaging will encourage smuggling further. It appears to be doing so in Australia and we would be frightful that it would do the same in Ireland.